The UK’s gas and oil production increased by 7 per cent in 2015, according to new figures released by Gas and Oil UK, however, it is warning that it will be difficult to sustain these levels during the coming year.
In a statement, Oil & Gas UK’s chief executive Deirdre Michie, said:
“Government data for the first 10 months of 2015 shows that the total volume of oil and gas produced on the UK Continental Shelf (UKCS) was up 8.6 per cent compared with 2014, with the production of liquids up 10.6 per cent and gas up 6.1 per cent.
“Output in November and December tends historically to be more stable, but even so, Oil & Gas UK now expects year end production for the full year of 2015 to be seven to eight per cent higher than last year.”
However, Michie also made it clear that gas and oil production will face many challenges in the year ahead; the most pressing challenges for the offshore gas and oil industry include the low prices for oil, and the sector is also facing job losses.
In a recent statement, Michie also spoke of the importance of a resilient gas and oil industry, and it is imperative that the gas and oil industries adapt their strategies if they are going to compete globally and gain vital investment.
The official announcement that production was on the increase followed predictions issued by the government in late 2015, but figures are expected to decline from 2020, according to the UKCS Oil and Gas Production Projections.
A number of new initiatives were introduced in 2015 to help bolster the gas and oil sector in the UK. In late 2015, an Industry Behaviours Charter was signed by the Oil and Gas UK Board. The aim of the charter was to improve efficiency in order to transform the offshore gas and oil industry and enhance collaboration between SMEs, contractors and operators, as well as to develop new business models.
In addition, the Rapid Efficiency Exchange was launched to allow gas and oil companies to come together to share useful advice on improving efficiencies in the industries, while also providing a forum to discuss the challenges that face the sector.
Oil and Gas UK added that an important factor for the future of the industries would be support from the government and HM Treasury.